ABTA is reminding the public at the busiest time of year for booking summer holidays that the recent VAT rise to 20% does not apply to the total cost of an overseas package holiday. Tour operators’ profit margins are subject to VAT but the rise will represent a tiny, if any, increase in cost to consumers. Packages are especially popular with budget conscious families and this is great news as they take advantage of the excellent deals and choice available to early bookers.
Victoria Bacon ABTA Head of Communications said: “VAT is now at a historically high level but I can reassure customers that the tax does not apply to the total cost of an overseas package holiday. This time of year is also traditionally when ABTA Members put out their best prices and have the widest availability and choice. There couldn’t be a better time to book”